RSS feed Get our RSS feed

News by Topic

BizReport : Advertising archives : April 13, 2010

Q1 shows growth for magazine ad revenue

Good news could be on the horizon for publishers: according to data from the Publishers Information Bureau (PIB) magazine advertising showed strong growth in several categories to round out Q1 2010 even though the overall revenue dropped to just over $4 billion, a 4% decline year over year. Auto, Finance and Toiletries/Cosmetics were the categories showing the strongest growth.

by Kristina Knight

"The picture was brighter with an increase in major categories posting ad page and revenue growth, despite softness overall," said Ellen Oppenheim, Executive Vice President & Chief Marketing Officer, Magazine Publishers of America. "In addition, almost six times as many titles generated ad page gains compared to first quarter of 2009, another sign of industry improvement. The positive trending in pages and revenue suggests that second quarter performance for magazines will be stronger."

Here are the numbers:

• Toiletries/Cosmetics posted a 7.6% increase in ad pages and revenue
• Automotive posted a 1.3% increase in ad revenue and ad pages
• Finance, including real estate and insurance, posted an 11.3% increase in ad pages and revenue

However, several other key categories showed significant drops. Both the Apparel/Accessories and Drugs/Remedies categories each showed a 15% decrease, Media/Advertising showed a 13% decrease and Home Furnishings/Supplies showed a 10% decline. Technology (14% decrease) and Hotels/Resorts (13% decrease) also showed sharp declines.

The big news is that the auto sector is one of the increases. Q1 2010 marks the first increase in the auto category since 2007 according to the PIB. Also, 85 different magazine posted increases in their advertising pages for the quarter; only 15 magazines did the same in 2009. More than 100 magazines reported PIB revenue increases for the quarter compared to only 28 in 2009.

Does this mark a turning point for magazines? Only time will tell but it is a sign of the strengthening economy that so many magazines posted overall increases for the quarter.

Tags: advertising, Magazine Publishers of America, magazines, publishing

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.